Trane Shares Rise on Back of Strong Business

TT designs, manufactures, sells, and services climate control products. It provides heating, ventilation, air conditioning, and transport solutions for customers throughout the world. Trane generated nearly 72% of its sales in the U.S., with the rest from more than 100 other countries.

The company reported record bookings in the second quarter of $5.3 billion, up 19% on a year-over-year basis. Its adjusted per-share earnings grew by 23% and it expects growth of 20% or more next quarter too. Also, the company has a business backlog of $7.5 billion, which bodes well for this year and 2025. All these factors led TT to increase its full-year revenue and EPS guidance.

It’s no wonder TT shares are up 16% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Interest in Trane Heating Up

Institutional volumes reveal plenty. Recently, TT has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in TT shares. They reflect our proprietary inflow signal, pushing the stock higher:

Plenty of industrials names are under accumulation right now. But there’s a powerful fundamental story happening with Trane.

Trane Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, TT has had strong sales and earnings growth:

• 3-year sales growth rate (+12.8%)
• 3-year earnings growth rate (+26.7%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +11.3%.

Now it makes sense why the stock has been powering to new heights. TT has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Trane has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when TT was a top pick…sending share prices up:

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Trane Price Prediction

The TT rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in TT at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.